Lets get your global exchange, where we bring you todays market moving news from all around the world. From hong kong to munich to paris washington to sarasota, florida and new york, our bloomberg voices are on the ground with todays top stories. There are questions about transparency for china. Rishaad salamat joins us from hong kong. Walk us through some of the latest. Now with63,000 cases the death toll up by 121, but the inconsistency in the numbers has led to a lot of questions. Some of them are not being answered, and that has led to people thinking that this disease is not really going away at the moment. We had some optimism a couple of days ago, but that has receded somewhat. Weve also got bickering between washington and beijing. The u. S. Saying they have been denied that. On a microeconomic level, weve got companies such as Fiat Chrysler halting production in one of its plants in serbia. They cant get enough parts out of china. If you want to buy a barbie doll in the future, mattel delaying production, saying that point production is falling. Im going to leave you with a little bit of optimism. The Chinese State biotech seeing says it has been dramatic improvements. Back to you in london. Alix thank you. Now we want to head to germany. Gdp flatlined for the Fourth Quarter, which may leave the country vulnerable to trade uncertainty from the coronavirus threat. You can read this as a glass halffull or glass halfempty. Reporter you can, and you also need to make an important differentiation that u. S. Viewers might find interesting. The german look at the headline number is quarter over quarter gdp. In the u. S. , we would look at yearoveryear figures at the headline number. In that case, there was growth in the german economy, 0. 3 . Quarter over quarter, it is an absolute zero. A lot of factors leading to that. One of them is Less Government spending. You hear calls from the ecb, from Christine Lagarde for more stimulus. You heard calls from draghi for that as well. I think market watchers are hoping that Christine Lagarde is going to be more successful in getting that out of berlin. This number might help them do it because of course, they want to avoid a recession. They did avoid a recession, but the finance minister says the economy minister, i should say, says that the coronavirus is an increasing threat to the german economy. We saw the First Factory in carpe idled in the industry. It was not a german carmaker, but Fiat Chrysler has idled in serbia because of the coronavirus screwing up their supply chain and making it impossible for them to get any work done. That kind of thing can happen in germany, too. That is the kind of threat they need to fight against. This figure doesnt really help them to prepare for the beginning of a difficult 2020. Alix its a great point. Thank you. Now we had to france, where renaud is moving to a reinsurer investors. The automakers interim ceo says they have a costcutting plan. Abouterg spoke to her production. We had to close our plant in. Ussan our auto plants going to be impacted . Very much possible. Alix what were some of the biggest take from that interview . Biggest takeaways from that interview . Reporter it has been a very ltfficult year for renau since the arrest of carlos ghosn, and the coronavirus is not making things any easier. You heard the ceo talking about some planned closures in south korea, and the supply chain could be disrupted as far as europe. We could see possible closer in renaud factories in france, and in europe as well. That is just one of the hurdles facing renault for 2020. They are also facing new regulations on emissions, and their partner nissan is also having a very difficult time. So the ceo announced this morning a new costcutting plan of 2 billion euros. Exclude any plant closures, even in france, where it is a difficult, sensitive subject politically. Shes going to give details on these plans in may, two months before the arrival of the new in july. If they want to do more costcutting, she says we will do more. Alix thank you so much. Now we focus on trade. The u. S. And china phase i trade deal goes into effect today. For more on what is ahead, shawn donnan, bloomberg trade reporter. It is all good you get the headline today, but where does it go from here . Shawn a lot has changed in the last month. The coronavirus has cast a big doubts over whether china will be able to live up to its purchase commitments of 200 billion of additional u. S. Buyrts it has promised to is part of this deal. The good news is we see some relatively small tariff cuts taking effect today on both sides. The u. S. Is reducing the tariff rate on about 110 billion of tariff imports. The chinese, and a reciprocal move, are doing something similar with about 75 billion in exports to china. But it is fair to say that we have just as many questions about this deal today as we did a month ago when President Trump signed that at the white house. The other big question that relates to all of the tariffs oft remain in place, on some 360 billion of imports from china, they will only go away, the administration says, once you have a phase two deal. We do not have any plans outlined at this point for a phase two deal. So the clock starts on those purchases today, but some huge questions about what comes next. Alix great recap. Thank you very much. In the u. S. , we get retail sales for january at 8 30 a. M. Eastern time. Joining me from sarasota, florida is michael mckee, who is there for a big interview. Michael the retail Sales Numbers are going to be of interest to the fed and to economists because consumers seem to slow down at the end of 2019. January is the month when everybody redeemed their gift cards that they got from the holidays, so we will see of spending held up. Forecasts came in stronger, but a little weaker than it was in december. Look for the retail control group, expected to be up 0. 3 . We also have Industrial Production numbers, the Manufacturing Sector in a slump. We will see if they pull out of that. Though, for the fed to see any reaction to the coronavirus from these numbers. Aboute will be talking today with cleveland fed president read a master president loretta mester, this is when we are supposed to see some good news in the economy when tensions fall off with china come of it may be too early for that with the coronavirus. A lot to talk about with her. Alix looking forward to that. Stay with us for mikes interview with loretta mester, coming up at about 12 30 p. M. In new york and 5 30 p. M. In london. In washington, attorney general william barr making a rare rebuke of President Trumps tweets and public comments, saying it makes his job impossible. Mr. Barr i cannot do my job here at the department with constant background commentary that undercuts me. Alix david westin, host of bloomberg balance of power and wall street week if youre was more. I was stunned that this happened. David and you should be stunned. It was extra mary. Roger stone was supposed to be sentenced, and the Justice Department had a recommendation. The president tweeted it was iculous, and justice barr changed it. Now he has thousands of prosecutors who are not sure whether he is calling the shots. O of them quit. Four of them quit. And those judges have to ask themselves, is this a political motivation . The question is what does this mean for attorney general barr and for the president. I dont think any cabinet member has ever publicly done this. Is it conceivable that president might actually listen a lot of republicans have been urging him to do that. Alix thank you so much. You will also be joining us later. Another story we are watching, big changes on the way at world bank of scotland. They have a new ceo abandoning the banks three centuryold name. It will be renamed natwest group. They are also adopting the English Branch network used two decades ago. They say they continue to see challenges on its income. We are clearly going to incur some losses in terms of the resizing of natwest markets. The yield curve is still going in this direction, and in our base case, we are anticipating we will have another year of curve cuts. Those things all make income harder, particularly for banks. Alix rbs also said it was cutting targets for the year and would focus on lending that doesnt have carbon emissions. Coming up, more on your morning your trade analysis of the markets. This is bloomberg. Alix time now for bloomberg first take. We give you the news, you get the trade and analysis of the markets. Joining us is Marcus Ashworth, Bloomberg Opinion columnist, and also joining us is jordan rochester, Nomura International g10 fx strategist. Do . Do you coronavirus is showing some signs potentially, but the reality is it could get moment,ain, and at the it has been going to the moon. Left. Has got some yield alix you cant by greece anymore. Guy nor should you, i would argue. Fact we have seen a relatively mild european testing today, european session i think we will see some trimming of positions because we dont know how the weekend will play out with respect to the virus numbers. Jordan over the weekend, we could have more bad news. So i am the pessimist here. Alix your kind of that guy. [laughter] jordan a good trade has been actually to be long vol over the weekend. Typically on a friday, traders cut their positions because they think over the weekend, i dont want to pay for the extra carry. Actually, we tend to get big moves on mondays, when weve had two days of information. New headlinessome about factories closing down. Had that one in europe already. Said this is a new narrative. I have to be the realist. Alix but there is no volatility. Where . Where do you go . Jordan it is all about asia, and now about euro and the g10. Very cheap vol levels. This is becoming more interesting for europe. Eurodollar looks really cheap compared to historical levels, now breaching below 1. 09. To 1. 08s up the 1. 05 range. Look at euro on a broad measure. Euros not that cheap. Our base case is more optimistic. The end of the year, we will have dollar selling off. Andeuro will be higher, humbly factories go back to work in the next few months. For the time being, we just dont know. And euro still operates like a risk off currency. Marcus the only thing keeping the european economy alive is the fact that the currency is we getting because the rest is unrelenting bad news. Laura at the same time, i think next week we are going to see potential he some of the virus impact play out. We are expected to get sentiment indicators from germany and february pmis. If we see virus fears relatively contained, that could provide a floor to europe. Jordan i said green shoots about a month ago. The data was getting better. We started to see new orders rising. Alix but couldnt had have been worse but couldnt it have been worse . Whole point. S the last years last year. Everyone keeps expecting a bounce in europe. Every times it get every time it gets whackamoled. So why am i going to buy treasury and dollar allday long . Jordan look at commodities. They moved massively. The dollar has actually been really small moves compared to historical levels. We are going to have a big drop in global pmis, and the dollar has not reflected that. Eurodollar doesnt reflect that. Marcus believe in the optimism and buy copper because that is the one thing that is going to pick up. Laura you dont see this bond rally fading at any point, then . Iscus what is going on telling me that people are moving to protect themselves, stop the carry from going up. People are still buying bonds of the most ridiculous levels because they are insuring their per folios. Laura i agree. Dearly we are seeing overstretched valuations in u. S. Equities, futures positions poising to euphoria within the market. That is why we are seeing this correlation between bonds and stocks where they are. Jordan lets say treasuries selloff 15 basis point. Do you sell or do you buy . Points 15 this is 15 basis point, yes, please. Alix we heard yesterday the fed is going to pare back what they are offering in the repo market. If the narrative is you got stocks because they are expanding their balance sheet, dont you have to now sell equities . Laura i dont think so. I think the market expectation has been that the fed is going to be the backstop, and any kind of volatility, i would expect that the fed is going to step in and provide liquidity to the market. Ultimately, they are saying inflation and full employment mandate, but ultimately, it is becoming around fostering financial conditions to support the equity market. Marcus they have to keep the liquidity. It is the one thing they can do. Not qe, but everyone reads through that. The point is they are going to [indiscernible] jordan equities have been the least macro market of all of them. Alix alix so shouldnt the dollar be weaker . Jordan not with the risk off we are going to see. The u. S. Consumer is on fire. While manufacturing has slowed down significantly america, is stillles numbers the upper form story versus europe, when youve got all of this uncertainty for manufacturing, the consumer is not on fire in europe. So we were expecting green shoots, manufacturing pickup, europe to do better, and that was going to lead to the dollar being weaker. Those green shoots are now brown shoots. It is not going to happen for the time being, until we see Chinese Workers going back to work. Once we see that, we are back on. Alix they are not all of a sudden going to rush out the doors. It is going to take a slow grind, see you are not going to get all of a sudden. Marcus china may well chuck a load more at it, but youre absolutely right. Until we see a return to work in a meaningful sense, you have to be pretty skeptical on this. Alix really appreciate it. Marcus ashworth and lara cooper, thanks so much. Jordan rochester of nomura is going to stick with me. Go to gtv under terminal. You can browse the features and safety charts. This is bloomberg. Viviana this is bloomberg daybreak. Will sayerberg facebook may have to pay more tax and pay in different places, according to multiple reports. The ceo speaking to a security Conference Tomorrow in munich, expected to say he understands the frustration about how Tech Companies are taxed in europe. Wells fargo plans to cut hundreds of workers in the philippines. Some of those jobs will be moved to india, where the bank already has about 12,000 workers. Wells fargo is joining a push across the Banking Industry to have tech workers in fewer locations. Dividend,ashed its all supposed to gets first lost first loss in a decade. Fullyear operating income plunged to a worse than expected early percent. Worse than expected 30 . Alix lets stay on autos for a second. Tesla shares have risen about 83 since the start of the year. Abouthas actually raised 14 billion over the last decade. Investors really dont seem to care. Instead of punishing the company for diluting shares, the market continues to send stock higher. Why wouldnt they ask for more equity if everyone keeps on buying . Similar story with its debt. We will break down more later in the program. Coming up, the u. S. And china bigger over the coronavirus. The white house is questioning chinas transparency. We will be joined by george magnus, oxford china associate. You are looking at a long weekend in the u. S. , and a tiny bit of risk on in the commodity and equity market, but still the bid into treasuries. This is bloomberg. When it comes to using data, everyone is different. Which is why Xfinity Mobile created a different kind of wireless network. One that saves you money by letting you design your own data giving you more choice and control compared to other top wireless carriers. Now you can choose unlimited, shared data, or mix lines of each and switch any line, anytime. No one else lets you do that. Design your own data with Xfinity Mobile. Its wireless reimagined. Simple. Easy. Awesome. Alix this is bloomberg daybreak. Im alix steel. Happy valentines day. Typically, we have seen a little buying in the equity markets and selling in the treasury market on fridays. We will see if that plays out today as well. The dax up 0. 2 despite that on a sequential basis, german Fourth Quarter gdp was terrible, but it could have been worse. See aollar, do we breakdown through 1. 08 and then 1. 05 . Euros swissie breaking down as well. From the toll coronavirus is hitting a 1380 as the uss china wont let its Health Workers fight the virus u. S. Says china wont let its Health Workers fight the virus. Towe thought there is going be more transparency, but we are a bit disappointed. We are more than willing to work who on this, and they wont let us. I dont know what their motives are. I do know that more and more people are suffering over there, and that is not a good thing. Georgeutting me now, magnus, Oxford University china centre associate. Also from new york is bloombergs david westin, host of balance of power and wall street week, and still with me is jordan rochester of nomura. How did this come up on your inll street week program relation to the virus . David this has got to be the big story of the week, and you can come about it from all different ways. What does it mean for the economy, for the u. S. Economy, for markets . We talked about do we know what the numbers really are. They said no, it is not different from anything else in china. We ask, did using theres going to be a fairly quick rebound, or will it take longer . This is what they said. Theres a perception in the market that this is not going to event from anking economic point of view, and we may even be on the downward side of the curve in terms of the number of cases. David i followed up, saying is l. S a v, a u, or an sars, with a, like quick rebound. Alix george, what do you think . Do think the economic consequences of this are pretty severe. Provinces are accounted for about 80 of chinas gdp, 10 of global gdp, that have effectively shut down. E can all do the maths everyone has explained ad nausea him now it will be explained ad nausea him explained ad. Auseam now u . Ix is it a v, a george at the moment, i think i